Reg Vardy records profit fall

DEALERSHIP group Reg Vardy has announced a fall in profits and turnover, mainly caused by plummeting residual values as investigations into car pricing sowed uncertainty and confusion in the new and used car markets last year. Turnover fell to £656 million in the six months to October 31, 2000, compared to £667 million for the same period in 1999, while pre-tax profits were down to £9 million (1999: £14.5 million).

Chairman Peter Vardy also revealed Vardy Contract Motoring is delaying the launch of some new products until the market is more stable and has set aside £1.6 million to offset residual value falls on its 5,120-vehicle fleet. The firm has also made provision for £2.6 million in losses on buy-back arrangements for Motability scheme vehicles.